The Effects of Employment Shocks on the Self-Employed: Evidence from Discontinuities in Professional Golf

147 Pages Posted: 29 Jul 2019

See all articles by Benjamin S Smith

Benjamin S Smith

Federal Trade Commission - Bureau of Economics

Date Written: July 25, 2019

Abstract

I study self-employed, professional golfers to understand the effects of employment shocks on future earnings and productivity. I exploit discontinuities in the PGA TOUR’s membership assignment mechanisms to estimate the long-run effects of temporary employment shocks. I find large initial treatment effects on earnings. However, these effects quickly dissipate and there are no effects on performance. To understand the mechanisms behind these results, I compute job transition rates for golfers and find evidence of a highly fluid labor market. In particular, high exit rates from the PGA TOUR can largely account for the convergence in outcomes between treatment groups.

JEL Classification: Z22, J49, J69

Suggested Citation

Smith, Benjamin S, The Effects of Employment Shocks on the Self-Employed: Evidence from Discontinuities in Professional Golf (July 25, 2019). Available at SSRN: https://ssrn.com/abstract=3426750 or http://dx.doi.org/10.2139/ssrn.3426750

Benjamin S Smith (Contact Author)

Federal Trade Commission - Bureau of Economics ( email )

601 Pennsylvania Avenue, NW
Washington, DC 20580
United States

HOME PAGE: http://www.benjaminssmith.com/

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